VietnamCommercial Bank for Industry and Trade : VietinBank Financial Reporting News 3Q2022 & Business Performance in 9M2022

3Q2022 and 9M2022

HIGHLIGHTS

#POSITIVE BUSINESS RESULTS

News update | 3Q22 and 9M22 | Page 2

VietinBank's business performance in 9M22 continued to achieve positive results.

	1					4					7
	Total assets			Industry Top	Total income			Positive
									CIR
		1,751		14.3%		47.3		20.6%				28.9%
					27.3%
		VND, Tn			(ytd)		VND, Tn		(yoy)			(9M2022)		(9M2021)
		(30/09/2022)					(9M2022)
												8
2	Loans to customers				5	Profit before tax
											NPL
		1,245		10.1%		15.8		13.3%		1.42%		1.26%
		VND, Tn			(ytd)		VND, Tn		(yoy)		(30/09/2022)		(31/12/2021)
		(30/09/2022)					(9M2022)
						6					9
	3 Customer deposits				Provision expenses						Positive
										NPL coverage ratio
		1,190		2.4%		18.6		33.0%				180.4%
					222.4%
		VND, Tn			(ytd)		VND, Tn		(yoy)		(31/12/2021)
						(30/09/2022)
		(30/09/2022)					(9M2022)

SCALE INDICATORS

# GOOD GROWTH

Main scale indicators in 3Q22 of VietinBank continued to enjoy both ytd and yoy growth
1			2
TOTAL ASSETS (VND, Tn)		TOTAL LIABILITIES (VND, Tn)
	1.691	1.751			1.645
1.664			1.588
1.565

	1.532	1.438
1.448
	1.352

3Q21 4Q21 1Q22

3

Customer deposits slightly increased (+2.4% ytd) but decreased qoq due to general situation of the banking industry.

Deposit structure continued to increase proportion of Retail and SME.

CASA continued to positively improve in both balance and proportion ytd (CASA balance reached VND 244 trillion, up 4.2% ytd and accounted for 20.5%).

4

Loan balance increased positively by 10.1% ytd, meeting production and business needs recovering after the pandemic, in line with the general situation of the banking industry and making the most of the credit room approved by the SBV.

Loan portfolio structure continued to improve positively in highly profitable segments namely Retail (up 25.6% ytd and accounted for 36.8%) and SME (up 10.9% ytd and

accounted for 26.5%).	YTD

2Q22	3Q22				3Q21				4Q21	1Q22	2Q22	3Q22
			CUSTOMER DEPOSITS (VND, Tn)
49,4%				12,8%	25,6%			9,1%	3Q22		1.190
49,8%				12,6%	24,7%			9,5%	2Q22	1.206		+10.9%
49,5%				12,1%	24,8%			9,6%	1Q22	1.213
48,4%				11,2%	26,6%			9,9%	4Q21	1.162
50,0%				11,3%	25,7%			9,4%	3Q21	1.073
			Retail				SME				Large corp.			FDI
			LOANS TO CUSTOMERS (VND, Tn)
458						330			388			62
									3Q22		1.245
446					331			395			64	2Q22	1.238	+14.8%
414	321			416			67	1Q22	1.230
364	298		396	59				4Q21	1.131
334	285		393	62					3Q21	1.085
	Retail		SME				Large corp.					FDI
+25.6%	+10.9%	-2.1%			+4.1%

OPERATING INCOME

# CONTINUOUSLY POSITIVE GROWTH

News update| 3Q22 and 9M22 | Page 3

9M21

2021

3M22

6M22

9M22

34,4

5,0

2,4

5,5

NII (excl. guarantee NFI (incl. guarantee Net income from FX

Other income

fee)

fee)

trading

TOI in 9M22 reached VND 47.3 trillion (+20.6% yoy). Notably: (i) NII was up 12.1% yoy thanks to VietinBank's effort to optimize its granted credit room and restructuring measures to improve the credit portfolio efficiency; (ii) net income from FX trading continued to grow strongly +80.1% yoy as VietinBank continued to diversify the structure of FX products, effectively exploited the existing profound customer database and promoted the development of new customers in the market.

NFI (including guarantee fee) in 9M22 reached nearly VND 5,000 billion (+10.5% yoy).

In which, income from insurance and other income continued to have a positive improvement compared to the same period last year thanks to the implementation of sales promotion along with improving service quality,

meeting diversified and comprehensive financial service needs of customers.

Net profit from payment activities

decreased yoy as VietinBank continued to maintain policies of exemption and reduction of various support service fees for customers to promote CASA growth.

				STRUCTURE OF FEE INCOME
29,1%	28,9%		28,7%	31,3%	33,5%
23,9%	24,9%		28,0%	29,0%	27,9%
37,8%	38,1%		33,8%	31,5%	31,1%
	9,3%	8,2%			9,6%	8,2%	7,5%
	9M21	2021			3M22		6M22		9M22
			Guarantee			Payment			Insurance		Others (*)

(*): Other income in service fee income include: Commission fee collected from cooperation in selling life insurance

with Manulife, fee collection from entrustment and agency operations, fee collection from import - export LC.....

COST MANAGEMENT

#REASONABLE

ACCUMULATIVE CIR

CONTROL

32,3%

CIR 9M22 reached 27.3%, a slight increase compared

to that of 6M22.

Operating cost 3Q22 was up 33% yoy, mainly

28,9%

increase in administrative expenses (+29.5% yoy) as

VietinBank accelerated

post-COVID activities to

27,1%

27,3%

promote business and develop customers through

27,0%

customer gratitude events, promotions campaigns,

products & services marketing and communication

programs.

9M21

2021

3M22

6M22

9M22

PROFIT

# GOOD GROWTH

PROFIT STRUCTURE IN 9M22 (VND, Tn)

Net income before provision expenses in 9M22 reached VND 34.4 trillion (+23.2% yoy). VietinBank also actively spent resources to set up risk provisions in accordance with regulations in order to increase the financial reserve buffer for the bank's operations in the coming time, credit risk provision cost in 9M22 was VND 18.6 trillion (+33% yoy). Accordingly, PBT in 9M22 reached VND 15.8 trillion, (+13.3% yoy).

YoY

+12.1% +10.5% +95.1%

+20.6% +14% +23.2% +33 %

+13.3%

DEBT QUALITY #UNDER CONTROL IN ACCORDANCE WITH APPROVED PLAN	News update | 3Q22 and 9M22 | Page 4

1

NPL out of outstanding loans 3Q22 was at 1.42%, a ytd increase.

In the context that the world market was still complicated, potentially affecting the recovery speed of the economy, imposing a significant impact on the production and business of enterprises, causing many businesses to need a longer time to fully resume operations and the banks were required to consider the overall debt structure for customers. Accordingly, the quality of debt at VietinBank was also affected to a certain extent, mainly in the group of basic construction, processing and manufacturing industries…

In the last 3 months of 2022, VietinBank will continue to make efforts to implement synchronous solutions to control arising bad debts, strengthen debt collection and settlement to ensure that the bad debt ratio is controlled below 1.8% according to the plan approved by the General Meeting of Shareholders.

2

Risk provision expenses in 9M22 was VND 18.6 trillion, up 33% yoy.

NPL coverage ratio in 9M22 was 222.4% (up 42% compared to that of year end 2021) mainly provision for fluctuations in debt quality at VietinBank due to certain influences from some general difficulties of the economy.

					NPL RATIO AND NPL COVERAGE RATIO
5,0%							222,4%	230,00%
					197,3%	189,7%
			180,4%
4,0%						180,00%
3,0%	118,6%
							130,00%
2,0%	1,67%	1,26%	1,25%	1,35%	1,42%	80,00%
1,0%								30,00%
0,0%								-20,00%
3Q21		4Q21	1Q22		2Q22	3Q22
				NPL/outstanding loans		NPL coverage ratio

News update | 3Q22 and 9M22 | Page 5

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Disclaimer:

This material was prepared using financial statements and other reliable sources with the aims to provide information only. It is recommended to use this material as a source of reference only. The information might be updated from time to time and it is not our responsibility to notify about those changes (if any).

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Vietnam Joint Stock Commercial Bank for Industry and Trade

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